Posted on 30 April 2013
Former Blackburn boss wins £2.25m in compensation
Posted in Legal news
The former Blackburn Rovers manager Henning Berg, who lasted just 57 days in charge at Ewood Park, has been awarded £2.25m in compensation.
The Championship side, who have sacked three managers this season alone, have been forced to pay Berg for the remaining two and a half years of his contract at the High Court in Manchester. The club had argued that managing director Derek Shaw had acted without the authority of the owners in agreeing the compensation terms with Berg prior to his departure.
Rovers had wanted to withdraw an admission that they were liable to pay their former manager the full amount for the remainder of his contract but this was dismissed by the judge in Manchester. Berg had already received £562,500 from the club in February and will now be paid a further £843,750, the outstanding net figure he is due. The club also has to pay £20,000 in interim costs.
The court heard that the club had been unable to pay Berg the full amount immediately because of “cash flow problems” and had been hoping for an advance on the parachute payments they receive following their relegation from the Premier League last season. In court the club’s own lawyers were forced to admit the club was a “shambles” behind the scenes”, with Shaw being asked to stay away from Ewood Park while the club investigated the circumstances behind Berg’s appointment and his subsequent compensation claim.
Richard Bevan, the chief executive of the League Managers Association, says that all clubs in the Football League need to examine the High Court judgement in this case. He said it was unacceptable for a club to allow a state of affairs to arise whereby its managing director is operating outside of the authority of the owners.
Michael Appleton, Berg’s permanent successor, was appointed in January but he himself only lasted marginally longer than Berg, 67 days, before being sacked to leave reserve team boss Gary Bowyer as caretaker manager for the remainder of the season.